Battered JAL soars on another £1.34bn government loan

Click to follow
The Independent Online

There was no let-up in Japan Airlines' rollercoaster ride yesterday as news of further financial support from the government sent the group's shares soaring an unprecedented 31 per cent.

Last week, the debt-ridden flag-carrier's stock plummeted to record lows on two consecutive days as crisis talks broached the possibility of bankruptcy. But the Japanese government has now asked the Development Bank of Japan to give JAL a new ¥200bn (£1.34bn) line of credit so it can continue trading while a restructuring plan is put together.

Rumours of an imminent $1bn (£621m) deal with Delta Airlines also helped to buoy the share price, although JAL denied reports that a tie-up is in the offing. Talks with both Delta and American Airlines are ongoing.

The stakes are high. If Delta wins, JAL will leave the Oneworld alliance and join rival SkyTeam, taking its prized take-off and landing slots at Tokyo's Narita airport with it. JAL is heading for ¥63bn losses in the year to March, its fourth annual loss in five years.